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May 31, 2022
Carnival Q2 2022 Earnings Report
Provided business update for the second quarter of 2022.
Key Takeaways
Carnival Corporation reported a U.S. GAAP net loss of $1.8 billion and an adjusted net loss of $1.9 billion for the second quarter of 2022. Cash from operations turned positive, and the company ended the quarter with $7.5 billion in liquidity. Revenue increased by nearly 50% compared to the first quarter of 2022, with occupancy at 69%.
U.S. GAAP net loss of $1.8 billion and adjusted net loss of $1.9 billion for the second quarter of 2022.
Cash from operations turned positive in the second quarter of 2022.
Second quarter 2022 ended with $7.5 billion of liquidity.
Booking volumes for all future sailings during the second quarter of 2022 were nearly double the booking volumes during the first quarter of 2022.
Carnival
Carnival
Carnival Revenue by Segment
Revenue by Segment
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com Forward Guidance
The company expects a net loss for the third quarter of 2022 and for the full year 2022. However, adjusted EBITDA is expected to be positive for the third quarter of 2022 and improve throughout the year until it returns to historical levels in 2023.
Positive Outlook
- Adjusted EBITDA will improve with the ongoing resumption of guest cruise operations.
- Expects improvement in occupancy throughout 2022 until it returns to historical levels in 2023.
- Expects positive adjusted EBITDA for the third quarter of 2022.
- Carnival Cruise Line is expecting occupancy to approach 110 percent during our third quarter.
- Carnival Cruise Line, achieved consistently positive adjusted EBITDA beginning in March.
Challenges Ahead
- The company expects a net loss for the third quarter of 2022.
- For the full year 2022, the company continues to expect a net loss.
- COVID-19 global pandemic and its ongoing effects, inflation and higher fuel prices are collectively having a material impact on the company’s business, including its results of operations, liquidity and financial position.
- The company is experiencing challenges with onboard staffing which have resulted in occupancy constraints on certain voyages.
- Cumulative advance bookings for the second half of 2022 are at lower prices, with or without future cruise credits (“FCCs”), normalized for bundled packages, as compared to 2019 sailings.